Provisional attachment of bank accounts requires relevant material and necessity to protect revenue; writ relief was granted.

Provisional attachment of bank accounts under the Maharashtra Value Added Tax Act is a drastic measure that may be used only when, during inquiry, inspection, or search proceedings, the Commissioner has relevant material to form an opinion that immediate action is necessary to protect revenue. On these facts, the attachment lacked a satisfactory basis, the tax classification dispute had been pending for years, and an earlier determination had already been challenged before the Tribunal. The existence of an alternate statutory remedy did not bar writ relief because it was not efficacious in the circumstances. The taxpayer's undertaking not to alienate or encumber assets adequately protected the revenue, so the attachment was set aside and the accounts were released.

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Issues: Whether the provisional attachment of the petitioner's bank accounts under Section 35 of the Maharashtra Value Added Tax Act, 2002 was justified, and whether the petitioner should be relegated to the alternate remedy under the Act.

Analysis: Section 35 permits provisional attachment only when, during inquiry, inspection, or search proceedings, the Commissioner forms an opinion that such action is necessary to protect the revenue. The power is drastic and must rest on relevant material. The attachment was issued while search and inspection proceedings were in progress, but the material did not show any satisfactory basis for immediate coercive action, especially when the dispute regarding tax classification had been pending for years and the petitioner had already challenged the earlier determination order before the Tribunal. The existence of an alternate statutory remedy was not an absolute bar to writ relief, and on the facts the remedy was not considered efficacious. The petitioner's undertaking that its assets would not be alienated or encumbered sufficiently protected the revenue.

Conclusion: The provisional attachment was unjustified and was set aside. The bank accounts were directed to be released, and the writ petition succeeded.

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